USD/JPY: Recovery to speed on a break above 107.50

The USD/JPY pair trades near a daily high of 107.27, extending its recovery from the 106.00 region, but is neutral in the short-term while below the 38.2% Fibonacci level at 107.50, FXStreet’s Valeria Bednarik reports.

Key quotes

“USD/JPY has a limited bullish scope despite the ongoing recovery. Measuring the latest daily decline, the pair seems to be in a corrective advance, as it’s trading below the 38.2% of the slump, at 107.50.” 

“In the 4-hour chart, USD/JPY is neutral, as it’s trading between moving averages, with the 20 SMA flat below the current level and the 100 and 200 SMA converging a few pips above the 38.2% Fibonacci resistance at 107.50. Technical indicators lack directional strength, the Momentum around its midline, and the RSI at around 62.”

“Japan published the April All Industry Activity Index, which declined 6.4% from the previous -3.4%. The US has a busy day ahead as it will publish the final version of the Q1 GDP, expected to be confirmed at -5%, May Durable Goods Orders, seen up by 10.6% after collapsing by 17.7% in the previous month and Initial Jobless Claims for the week ended June 19, foreseen at 1.3 million.”